New business-class airline takes off

La Compagnie, a French airline traveling between New York and Paris, says it is different from those that failed in similar efforts. Flights begin on July 11.

A new French airline, La Compagnie, expects to shake up the Transatlantic market offering boutique-style service for business executives traveling between New York and Paris.

The company announced its inaugural flights on Tuesday, which are expected to take off from Charles De Gaulle Airport on July 11 and from Newark International Airport on July 12.

The bare bones operation has just one aircraft right now—a 74-seat Boeing 757—but its backers, some 41 mostly European investors, have sunk $31 million into the business which will slowly add to its fleet and expand its routes, starting in December when it acquires a second plane. La Compagnie [which means 'the company'] is owned by Dreamjet and will fly four to five times a week this summer. Its partner is Icelandair, which will maintain the aircraft and provide back-up service.

La Compagnie's founder Frantz Yvelin is hardly a novice. He founded another business-class airline, L'Avion, which was sold in 2008 to British Airways and has since merged with the airline's OpenSkies subsidiary serving the Paris to New York market.

"This is not the same model that has been tried before," said La Compagnie's deputy chief executive and co-founder, Peter Luethi, who hails from Swissair and JetAirways. "It is a new business model."

La Compagnie executives are betting on a competitive tiered pricing scheme to set it a part. There will be three price ranges depending on whether passengers purchase restricted or unrestricted tickets. The prices, which are approximate at this point because La Compagnie is waiting on U.S. government approval, start at $1,800, $2,400 and $4,600 for round trip tickets. The airline will also run promotional offers and is hoping its summer launch will inspire last minute leisure travelers to hop on board.

It is not selling luxury, Mr. Luethi said, though it will provide standard amenities for overseas flights such as flat seat beds and culinary offerings designed by a prominent chef. Instead of television, the aircraft will provide Samsung tablets stocked with movies, books, magazines, music and eventually newspapers.

To be sure, others have come and gone in the cross Atlantic, business-class only segment, including Eos, MAXjet and Silverjet. All launched nearly a decade ago and eventually filed for bankruptcy protection when the economy went south.

"There is a history here on the New York to London and New York to Paris routes of airlines trying to cream off a segment of big pie," said industry consultant, Craig Jenks, president of Airline/Aircraft Projects, Inc. "The downturn contributed to [the others'] demise, but it's not clear that a dedicated business class airline works. The jury is still out."

La Compagnie fully expects to get clearance from the U.S. Department of Transportation, Mr. Luethi said. On June 16 it sold its first tickets to travelers leaving from France, where it expects to book 60% of its business. There is no call center or marketing allowed yet in the U.S., but its U.S. web site and marketing will be activated later this month, the company said. Its U.S. headquarters are based in Jersey City.

Touting its New Jersey home, Mr. Luethi said Newark is closer to midtown Manhattan than rival airport John F. Kennedy International and also to many company headquarters based in Jersey City.

"Passenger friendly Newark fits into the boutique model," Mr. Luethi said. "The immigration process is easier, faster and more efficient."